Investors Buy Bank of America (BAC) on Weakness

Investors bought shares of Bank of America Corp (NYSE:BAC) on weakness during trading hours on Friday. $795.36 million flowed into the stock on the tick-up and $216.19 million flowed out of the stock on the tick-down, for a money net flow of $579.17 million into the stock. Of all equities tracked, Bank of America had the 3rd highest net in-flow for the day. Bank of America traded down ($0.16) for the day and closed at $29.30

A number of research firms have recently commented on BAC. Credit Suisse Group reduced their target price on shares of Bank of America from $36.00 to $35.00 and set an “outperform” rating on the stock in a research report on Friday, December 7th. Keefe, Bruyette & Woods cut shares of Bank of America from an “outperform” rating to a “hold” rating and reduced their target price for the stock from $34.00 to $29.00 in a research report on Tuesday, December 11th. Barclays reissued an “equal weight” rating and set a $34.00 target price (down from $37.00) on shares of Bank of America in a research report on Wednesday, January 2nd. Robert W. Baird reissued a “hold” rating and set a $28.00 target price on shares of Bank of America in a research report on Wednesday, January 2nd. Finally, Macquarie cut shares of Bank of America from an “outperform” rating to a “neutral” rating in a research report on Monday, January 7th. They noted that the move was a valuation call. One analyst has rated the stock with a sell rating, seven have assigned a hold rating and nine have assigned a buy rating to the stock. The stock currently has a consensus rating of “Hold” and an average price target of $33.18.

The stock has a market capitalization of $300.14 billion, a P/E ratio of 11.23, a price-to-earnings-growth ratio of 1.27 and a beta of 1.49. The company has a current ratio of 0.92, a quick ratio of 0.91 and a debt-to-equity ratio of 0.94.

Bank of America (NYSE:BAC) last posted its quarterly earnings results on Wednesday, January 16th. The financial services provider reported $0.70 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.63 by $0.07. The firm had revenue of $22.89 billion for the quarter, compared to analysts’ expectations of $22.37 billion. Bank of America had a net margin of 25.45% and a return on equity of 11.66%. The firm’s quarterly revenue was up 10.7% on a year-over-year basis. During the same period in the prior year, the company posted $0.48 earnings per share. Research analysts anticipate that Bank of America Corp will post 2.84 EPS for the current fiscal year.

The business also recently declared a quarterly dividend, which will be paid on Friday, March 29th. Investors of record on Friday, March 1st will be issued a $0.15 dividend. The ex-dividend date is Thursday, February 28th. This represents a $0.60 annualized dividend and a yield of 2.05%. Bank of America’s dividend payout ratio is presently 22.99%.

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Norges Bank acquired a new stake in Bank of America in the fourth quarter valued at $2,656,024,000. Northern Trust Corp raised its holdings in shares of Bank of America by 1.7% during the fourth quarter. Northern Trust Corp now owns 101,947,104 shares of the financial services provider’s stock worth $2,511,976,000 after purchasing an additional 1,696,074 shares during the period. Harris Associates L P raised its holdings in shares of Bank of America by 0.8% during the fourth quarter. Harris Associates L P now owns 81,107,007 shares of the financial services provider’s stock worth $1,998,477,000 after purchasing an additional 669,104 shares during the period. Oregon Public Employees Retirement Fund raised its holdings in shares of Bank of America by 2,345.4% during the fourth quarter. Oregon Public Employees Retirement Fund now owns 57,933,075 shares of the financial services provider’s stock worth $2,351,000 after purchasing an additional 55,563,977 shares during the period. Finally, Legal & General Group Plc raised its holdings in shares of Bank of America by 5.7% during the fourth quarter. Legal & General Group Plc now owns 43,093,827 shares of the financial services provider’s stock worth $1,061,797,000 after purchasing an additional 2,322,908 shares during the period. 64.22% of the stock is currently owned by hedge funds and other institutional investors.

TRADEMARK VIOLATION NOTICE: “Investors Buy Bank of America (BAC) on Weakness” was reported by Transcript Daily and is the sole property of of Transcript Daily. If you are accessing this piece on another publication, it was illegally copied and reposted in violation of US & international trademark and copyright legislation. The legal version of this piece can be read at https://transcriptdaily.com/2019/03/17/investors-buy-bank-of-america-bac-on-weakness.html.

Bank of America Company Profile (NYSE:BAC)

Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small- and middle-market businesses, institutional investors, large corporations, and governments worldwide. It operates through four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets.

Featured Story: How are the companies in the S&P 500 selected?

Receive News & Ratings for Bank of America Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Bank of America and related companies with MarketBeat.com's FREE daily email newsletter.